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{
"id": 441823,
"url": "https://info.mzalendo.com/api/v0.1/hansard/entries/441823/?format=api",
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"type": "speech",
"speaker_name": "Hon. Mati",
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"speaker": {
"id": 2469,
"legal_name": "G.J. Munuve Mati",
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"content": "Thank you Deputy Speaker for protecting me. Before I was rudely interrupted, I was saying that that democratic centralism demands that whatever is collectively agreed binds those concerned. I am a neighbour of a Member of the energy committee, and the committee decided that I was the best person to answer to this question; I will proceed and do the same. This is not a matter of opposition or ruling party. I am first and foremost a Kenyan and a legislator in the Kenya National Assembly before I becoming a CORD Member The company has been using the latest, and first of its kind, technology of the 3D seismic in exploring activities in Kenya. In addition, the company has employed and empowered many Kenyans through awarding contracts and Jobs. Despite the very good work, the Ministry of Energy and Petroleum has rejected a request for extension of their license to complete the work. In his Statement, the Chairperson was to inquire into and report on the circumstances under which the extension of this license for the said company was revoked, and state whether the company was consulted before the termination of the license. Two, indicate the number of Kenyans affected by the Government decision to revoke the license in terms of loss of employment and business opportunities, and state the steps the government is taking in mitigating the loss of jobs by Kenyans. Our response is as follows. Pursuant to Standing Order 44(2)(c ), the hon. Member for Lagdera Constituency, hon. Shidiye, MP, requested the Chairperson to inquire and report on the circumstances under which the extension of the licence for Van Oil Energy Limited was revoked, and whether the company was consulted on the termination of the licence. The committee on the 17th of February 2014, resolved to invite the Cabinet Secretary for the Ministry of Energy and Petroleum to appear before them on the 25th February, 2014 and report on the above request. Below is a brief of the report, findings of the Committee and the recommendations made. One, Van Oil Energy Limited, previously Van Gold Resources Limited, entered into a production sharing contract (PSC) for Block 3A and 3B with the Ministry of Energy on 16th October, (2007?). According to the Petroleum Exploration and Production Act, Chapter 308 of the laws of Kenya, a PSC contract for onshore is broken down into sequential periods defined as initial exploration period of two years, first additional exploration period of two years and second, additional exploration period of two years. By the end of the initial exploration period, Van Oil were contractually obligated and expected to have fulfilled the minimum work obligations for initial exploration period. Each PSC required them to have the following. one, reviewed, digitized, analyzed and interpreted all the existing data, seismic and well data; two, undertaken geological, geophysical and geochemical studies; three, acquired 1000 kilometres 3D seismic and 50 kilometers square 3D seismic data; four, drilled one well to a depth of 3,000 metres. The initial exploration period under the two PSCs was intended to run for three years as opposed to two years from 16th January 2008, which was the effective date of the PSCs; that was 90 days after entering into the contract. It was, therefore, expected that the initial exploration period would come to an end on the 16th January 2011. However, the duration of the exploration period of the PSCs had on four separate occasions been The electronic version of the Official Hansard Report is for information purposesonly. A certified version of this Report can be obtained from the Hansard Editor."
}